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lastat06513
Joined: 18 Mar 2003
Location: Sensus amo Caesar , etiamnunc victus amo uni plebian
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 Posted: Mon Dec 10, 2007 7:55 pm Post subject: Investing in Euros--- smart move? |
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| I was thinking of investing in a currency as a type of long term investment and I have to choose between the euro and the pound sterling...which would you think would be smarter move? |
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mindmetoo
Joined: 02 Feb 2004
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| Posted: Mon Dec 10, 2007 8:20 pm Post subject: |
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| Is currency speculation a good long term investment? If you have large amounts of money to gamble, go for it. But then one might be better off investing smaller amounts in a mutual fund. |
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thepeel
Joined: 08 Aug 2004
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| Posted: Tue Dec 11, 2007 4:56 am Post subject: Re: Investing in Euros--- smart move? |
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| lastat06513 wrote: |
| I was thinking of investing in a currency as a type of long term investment and I have to choose between the euro and the pound sterling...which would you think would be smarter move? |
You would be better off, if you wanted to do this sort of thing (and you shouldn't) buying the Chinese Yuan. It will eventually appreciate 20-30%. The ECB is going to try to devalue the Euro for manufacturing competitiveness anyways.
MM2 is right. Currency speculation is only for people with lots and lots of money. It is a very volatile and unpredictable market. |
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Tiger Beer
Joined: 07 Feb 2003
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| Posted: Tue Dec 11, 2007 7:41 am Post subject: |
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I'd think the YEN would be another good one. I read somewhere that it was devalued as well.
I'm no expert on this kind of thing, anyone else have any comments on Yen? |
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Juregen
Joined: 30 May 2006
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| Posted: Tue Dec 11, 2007 8:05 am Post subject: |
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| Currency trading is NOT an investment. |
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butlerian
Joined: 04 Sep 2006
Location: Korea
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| Posted: Tue Dec 11, 2007 8:08 am Post subject: |
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| Juregen wrote: |
| Currency trading is NOT an investment. |
One should also take into account the ethical issues surrounding currency speculation. |
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thepeel
Joined: 08 Aug 2004
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| Posted: Tue Dec 11, 2007 9:16 am Post subject: |
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| butlerian wrote: |
| Juregen wrote: |
| Currency trading is NOT an investment. |
One should also take into account the ethical issues surrounding currency speculation. |
It helps keep governments in check. I don't think it is unethical. Traders exploit the conditions created by monetary policy. |
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crazylemongirl
Joined: 23 Mar 2003
Location: almost there...
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| Posted: Tue Dec 11, 2007 11:30 am Post subject: |
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| Tiger Beer wrote: |
I'd think the YEN would be another good one. I read somewhere that it was devalued as well.
I'm no expert on this kind of thing, anyone else have any comments on Yen? |
Depends as the Bank of Japan's interest rates are really low. Common practice at the moment is what's called a 'carry trade' ie. borrowing in a low yielding currency like yen and buying high yeilding NZ dollars (current interest rates in New Zealand are over 8%). |
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Juregen
Joined: 30 May 2006
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| Posted: Tue Dec 11, 2007 5:24 pm Post subject: |
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| crazylemongirl wrote: |
| Tiger Beer wrote: |
I'd think the YEN would be another good one. I read somewhere that it was devalued as well.
I'm no expert on this kind of thing, anyone else have any comments on Yen? |
Depends as the Bank of Japan's interest rates are really low. Common practice at the moment is what's called a 'carry trade' ie. borrowing in a low yielding currency like yen and buying high yeilding NZ dollars (current interest rates in New Zealand are over 8%). |
That is just arbitrage between different interest rates and not currency trading.
Although that this formula carries the risks and benefits of currency trading. |
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